Xinte Energy : SUPPLEMENTAL ANNOUNCEMENT - DISCLOSEABLE TRANSACTION ENTERING INTO THE PARTNERSHIP AGREEMENT

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XINTE ENERGY CO., LTD.

新特能源股份有限公司

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock code: 1799)

SUPPLEMENTAL ANNOUNCEMENT

DISCLOSEABLE TRANSACTION

ENTERING INTO THE PARTNERSHIP AGREEMENT

Reference is made to the announcement of Xinte Energy Co., Ltd. (the "Company") dated 27 September 2019 (the "Announcement") in relation to a discloseable transaction relating to the Partnership Agreement. Terms used herein shall have the same meanings as defined in the Announcement unless otherwise stated.

The Company would like to provide further information in relation to the Partnership Agreement.

INFORMATION OF THE PARTIES TO THE PARTNERSHIP AGREEMENT

Hongshan Fund is a limited liability company established under the PRC laws and its major business scope is acceptance of entrustment of equity investment projects management, participation in equity investment, investment management, investment consultation, assets management and project investment.

Hongshan Fund has been approved by the Asset Management Association of China which has been accredited for its qualification on Private Equity Fund Management. Hongshan Fund is currently managing fund assets with a size above RMB40 billion with core business relating to Governmental Guidance Funds (FOF) and industrial mergers and acquisition

funds. As at the date of this announcement, Hongshan Fund is a non-wholly owned subsidiary of Beijing Chunxin Investment Management Co., Ltd. (北京淳信投資管理有限

公司), which is an independent third party not connected with the Company or its connected persons.

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BUSINESS SCOPE OF THE PARTNERSHIP

The Partnership Agreement has only specified that the Partnership will invest in equity of the relevant enterprises established in Urumqi which are engaged in strategic emerging industries such as high-end equipment manufacturing and new material manufacturing. No further concrete investment criteria and specific investment targets have been stipulated in the Partnership Agreement nor any investment mandate has been entered for the purpose of managing the Partnership's investments. Given no concrete investment mandate has been entered and no specific target has been identified, there are no further details as to the nature of the Partnership's underlying investment as at the date of this announcement.

No investment shall be made by the Partnership unless it has been considered and approved by the investment decision committee of the Partnership. The investment decision committee will convene meeting(s) after the Partnership has been established. The Company's representative will participate in the decision-making process, and the investment decision committee will identify investment opportunity based on several factors, inter alia, (i) whether the projects with development prospects, including but not limited to polysilicon production chain related projects are located in Urumqi; (ii) whether the projects are related to high-end and high quality equipment manufacturing encompassing pioneer technical skills or being patent being adopted and (iii) whether the polysilicon manufacturing related business is strategically new and innovative.

Should the Partnership enter any investment mandate or make any specific investment in the future, the Company will make necessary announcement on the specific nature of the underlying investment in accordance to the applicable Listing Rules. This supplemental announcement is supplemental to and should be read in conjunction with the Announcement. The Company will provide updates of the Partnership's development and investments, if any, in the subsequent annual report(s).

By Order of the Board

Xinte Energy Co., Ltd.

Chairman

Zhang Jianxin

Xinjiang, the PRC

8 October 2019

As at the date of this announcement, the Board of the Company comprises executive directors Mr. Zhang Jianxin, Mr. Yin Bo and Mr. Xia Jinjing, non-executive directors Mr. Zhang Xin, Ms. Guo Junxiang and Mr. Wang Shi, and independent non-executive directors Mr. Qin Haiyan, Mr. Yang Deren and Mr. Wong, Yui Keung Marcellus.

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